From time immemorial it has been said that Gold is one of the best investments that you can make. While it is a fact that it takes time for Gold to grow when compared to other stocks that are trending in the market, the best part remains the stability factor. When every other stock faces a steep decline, it is Gold that holds to its core and the drop is minimal. Even if the drop is substantial, in a month or so it returns to track due to its “commodity” category, and its direct correlation to oil prices in the market.
On Tuesday, gold prices were immensely up and hit a five-week high. The price reached $1600 an ounce in the late morning action of the stock market on Tuesday. Amidst the concern of the US Stock market in light of the recent coronavirus attack in China, Gold has been the haven for most investors and it is catching good speed in this period. The denting global economy has had no impact on the rising stocks of the yellow metal whereas the US stock market indexes are facing lows every now and then. At present, the value of Gold is up by 7.8% which takes the price to $1611. Such leap of growth isn’t really visible on the other stocks present in the market and with a possibility of a recession coming up, Gold looks like the best bet to place on for the safety of the funds.
People regard Gold as a risky asset and this is why only investing in Gold is never touted as a good option. On the other hand, the fact that Gold is regarded as a storehouse of wealth, it cannot be dismissed. The present growth in the stocks of Gold shows that people are flocking to Gold bonds and stocks due to the safety they offer over other stocks that are a lot more volatile in this recession laden market. When every other asset and stocks are falling, the value of gold takes a hike as investors shift to it and the overall value of Gold gets a major boost!
Gold is a good portfolio diversifier and in case of both inflation and deflation owning gold does give you an edge over others who don’t. If you are thinking about investing or shifting to Gold, you are on the way to be a smart investor.